Designing a pricing strategy is the most critical component while planning hospital services. The long term sustenance and success of a hospital depends upon effective pricing strategy. As prices are the flexible component of hospital services , leveraging its flexibility is the way forward to hospital's financial success. Trapped in the rope of disease being pulled hard from both ends it becomes difficult for the patients and their families to cope up with the pain of disease and the burden of hospital bills both at the same time. So it becomes important for the hospitals to make transparent and clear policy.Pakaging of various services is another trend that is on the rise. With the increase in health insurance packaging, packaging of services will increase further. This has become the mainstay of developed nations working on reimbursement for services, but in India it is still in the evolutionary stage. Hospitals should start looking at delivering value and move away from working on traditional pricing strategies.